2 Reasons to Sell Today

This housing market is not what the average person would expect during a pandemic.  I recently wrote an offer where we were one of 36 buyers wanting the house.  The winning offer had gone $101,000 above the list price and waived their loan and appraisal contingencies (basically a cash transaction).  Of course, much of this has to do with low inventory and even lower interest rates.  But even with everything going on, some would be sellers are still on the fence about making a move.

However, there are genuinely two good reasons to sell your home.  And here they are:

1. Time to cash out:  Almost no one can truly time the market.  However, many people have equity in their homes and with the way things are, the cash might come in handy.  According to CoreLogic, roughly 63% of properties in the US have mortgages in the 3^rd quarter of 2020.  Homeowner’s equity is up by about $1 trillion.  That’s an increase of 10.8% year over year.  Keep in mind under the current tax code, the first $250,000 if you are single and $500,000 if you are married in profit is tax free.  This means there are profits that could be even more than your yearly salary!  This cash can be used to pay off debts, invest, buy another home, or maybe do a small splurge (but don’t spend it all at once).  This is especially relevant for those who might have been hit hard by the pandemic and need the money.
2. You aren’t in your dream home.  Because interest rates are as low as they are, your buying power increases.  That, plus the potential funds from the sale of your home, you may be able to buy that dream home you wanted.  That could be upsizing or downsizing from your current home, maybe having a pool for those summer days, or you need to adapt to the COVID Lifestyle and have a home office with some yard space.  According to the National Association of Realtors, the most common reason to move was to be closer to family and friends.  Because it is a Seller’s Market, you can dictate the terms with potential buyers, giving you some flexibility on the move.

Everyone has their reasons to move or not move and that’s okay.  However, if you are thinking of selling, now is a good time to consider it.  It is free/low cost to consult with the right qualified people such as financial planners, CPAs, and of course, a Realtor®.